This article is in relation to Australian credit card providers. I’m sure you will find that the same or similar information will be true for credit providers in your country/region. Why is it that these types of business are all about ‘Buyer beware” especially when even our respective governments teach us that these same companies are to be trusted…(Banks, Financial Institutions)?

An Australian consumer advocate group, Choice, has released information from a study carried out on 20 credit card companies here in Australia.

It showed that the amount of interest charged on credit cards varies greatly between providers, (when the provider starts and stops charging interest and how fairly they apply the interest free days as actually advertised interest rate).

The fairer credit providers were shown to be Heritage building society, Bendigo Bank, Certain GE cards, and Teachers Credit Union, while the most unfair credit card providers mentioned in the study were, American Express (no surprises here), Commonwealth Bank, Bankwest, ANZ, and also Westpac.

The tricks of the Banking trade make it very difficult, if not nearly downright impossible for the consumer to compare the merits and relative benefits of competing card providers’ as the headline interest rate is only part of the story.Most card companies backdate the interest rate to the purchase date, if your repayment on the credit card is late (this means that if your one day late you will pay the whole interest amount on the preceding 55 days) or even if you might under pay by a slight amount (ie:- if you make any shortfall, even as low as $5.00) and if this happens on an amount of, say, $2500.00 that is really going to hurt. Consumers would be very surprised to know that if they had 2 credit cards with exactly the same interest rates and used them in the same way, (similar purchase amounts and repayments of interest etc) they could be charged twice as much interest on one credit card for overdue interest than on the other.

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According to PricewaterhouseCoopers (PwC), “Bad debts in the sector have reached historic highs,” with figures currently standing at around 6%.

This comes despite the credit card industry seeing a “cooling passion”, with borrowing down 3% to £64bn over the past year, and a cut in the number of credit cards in circulation, falling 8%, PwC reported.

PwC said in its latest edition of the annual report Precious Plastic that the past year has seen a peak in the number of consumers willing to take on more unsecured debt, with around £230bn made up by lending products such as credit cards, bank loans and hire purchase agreements – part of the total consumer debt which includes mortgages standing at around £1.5 trillion.

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There’s no “one size fits all” answer to this question, as the best credit card for you might not be the best credit card for your neighbour.

The financial decisions you make about credit will depend on your own personal situation, goals and spending habits, but in general we can agree that we all want the best credit card deal possible.

Sky-high interest rates? No good. Loads of fees? No way. Inflexible terms and harsh penalties for “breaking the rules”? No one needs that! So it’s safe to say that the best credit card in the UK is one that attracts reasonable fees, charges a fair interest rate, and offers flexible terms and conditions to suit your lifestyle.

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Women’s Credit Card – Compare Women’s Credit Card and find out what is low APR and balance transfer credit cards.

Have you ever wondered why you get credit card offers in mail when you have not even made a request for it. If your name and address is in public information system than by now you must have received many credit cards offers. Each giving better offer than other competing credit card company.

With so much information to process will lead to confusion and wrong acceptance of credit cards. Choosing a right credit card is a daunting job, it needs careful analysis and close scrutiny of fine points written in small fonts. Special attention should be given to credit card rates, when new higher rates will apply. Give importance to reading terms and conditions of credit cards. You will get new understanding of how credit cards work. Before you start applying credit cards you need to know few important terms used in credit card. By knowing these terms will help you applying for a correct credit card.

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